Tencent was an investor in a whopping 12 tech companies that have gone public since the start of 2017.
As billions of dollars continue to flood into private tech companies, one investor is gaining billions of dollars in tech IPO exits — Tencent.
Since the start of 2017, no investor (VC, PE, corporate, or otherwise) has notched more tech IPO exits than the Chinese social giant moonlighting as an investment holding company.
A total of 12 of Tencent’s portfolio companies, which include Sogou, China Literature, Sea, and Yixin Group, among others, have gone public over the period. The firm held a >5% stake in 10 of the 12 IPOs.
Notably, Tencent’s aggregate stake in these 12 IPOs was worth more than $20B at the time of exit (some IPOs have trended down since).
In some cases, Tencent has scored billions in value creation in just a few years. Chinese group-buying platform Pinduoduo, which was founded in September 2015, went public at a $29.6B valuation in July of this year. At the time of IPO, Tencent’s 18.5% stake in Pinduoduo was worth close to $5B.
Tencent has also invested in publicly-traded companies over the period, disclosing new or added stakes in Tesla and Snap last year. Its subsidiary, Tencent Music Entertainment, also conducted a share swap with music streaming giant Spotify in which it took a 7.5% stake worth over $2B today.
More is still to come. Tencent-backed online education service provider Koolearn Online filed to go public in Hong Kong in July. Tencent also holds a >20% stake in China’s largest service booking app Meituan, which is reportedly seeking to IPO for more than $60B. And Tencent remains a significant investor in Didi Chuxing, which is reportedly seeking a valuation of between $70B-$80B through an IPO.
Such IPOs would come after a significant rut in the public markets for Tencent amid mobile gaming growth concerns and a broader tech slump.
Here are Tencent’s IPO exits since the start of last year in order of recency:
| Company | Date of IPO | % Stake in IPO | Valuation at IPO ($B) | Focus Area |
|---|---|---|---|---|
|
7/26/2018 | 18.5 | 29.6 | Group e-commerce |
|
7/26/2018 | 10.7 | 1.7 | Fintech platform for auto financing |
 Uxin |
6/27/2018 | <5.0 | 2.8 | Used car marketplace |
 Huya |
5/11/2018 | 34.6 | 2.4 | Game streaming |
 bilibili |
3/28/2018 | 5.2 | 3.2 | Animation streaming |
 Yixin Group |
11/16/2017 | 24.3 | 8.2 | Online car retailer |
 Sogou |
11/9/2017 | 44 | 5.1 | Search engine |
 China Literature |
11/8/2017 | 62 | 11.9 | E-books |
 Sea Ltd |
10/20/2017 | 39.7 | 4.8 | Gaming |
 Zhong An Insurance |
9/28/2017 | 12 | 12.0 | Insurance |
 NetMarble |
4/21/2017 | 22 | 11.0 | Mobile games |
 Snap |
3/2/2017 | <5.0 | 20.3 | Messaging |